The Parkmead (PMG) AI Stock Analysis

• Market Cap: £15.84M
• Dividend Yield: N/A
• Average Volume (3M): 109.98K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.50
• Revenue Growth: -37.83%
• EPS Growth: N/A
• Country: UK
• Employees: 10
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 109,266,930
• 10 Day Avg. Volume: 172,984
• 30 Day Avg. Volume: 109,976
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £17.50
• Price Target Upside: 22.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: 17.50p ▲(22.81% Upside)

The overall stock score is bolstered by strong technical analysis and positive corporate events, indicating a strategic shift towards renewables. Financial performance shows areas needing improvement, particularly in revenue and cash flow. Valuation metrics suggest the stock is currently undervalued.

The Parkmead Business Overview & Revenue Model

Company Description

The Parkmead Group (PMG) is an independent energy company focused on the exploration, development, and production of oil and gas assets. Operating primarily in the UK and the Netherlands, Parkmead is involved in both onshore and offshore projects. The company leverages its technical expertise to identify, acquire, and develop opportunities within the energy sector, aiming to expand its portfolio and maximize shareholder value.

How the Company Makes Money

The Parkmead Group makes money through the exploration and production of oil and gas. Revenue is primarily generated from the sale of hydrocarbons extracted from its operated and non-operated fields. Key revenue streams include the production of natural gas in the Netherlands and oil in the UK North Sea. Additionally, Parkmead may engage in strategic partnerships and joint ventures to optimize resource development and share operational risks. The company also seeks to increase revenue by expanding its asset base through acquisitions and applying advanced technologies to enhance resource recovery.

The Parkmead Financial Statement Overview

Summary

Parkmead Company shows mixed financial performance with strong balance sheet stability and improved profitability margins, but challenges in revenue growth and cash flow.

Income Statement

The income statement reflects significant volatility. The gross profit margin for 2024 is approximately 59.76%, indicating a good level of profitability at the gross level. However, the net profit margin is skewed by a one-time event or accounting adjustment, as evidenced by the large net income in comparison to revenue. Revenue has decreased significantly from 2023 to 2024, with a negative growth rate, indicating challenges in maintaining top-line growth. EBIT and EBITDA margins have improved from the previous year's negative margins, showcasing a partial recovery.

Balance Sheet

The balance sheet shows a stable equity position with an equity ratio of approximately 72.04% for 2024, indicating financial stability. The debt-to-equity ratio is low at 0.06, reflecting minimal reliance on debt, which is a positive sign. Return on equity is high due to a significant net income, but this may not be sustainable. Overall, the balance sheet is strong, albeit with potential risks if revenue continues to decline.

Cash Flow

Cash flow analysis shows a decrease in operating cash flow from 2023 to 2024, reflecting operational challenges. Free cash flow is positive but reduced year-over-year, which may impact future investments and growth. The operating cash flow to net income ratio is skewed due to the disproportionate net income figure. The cash flow position is relatively stable, but the downward trend in operating cash flow is a concern.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	4.40M	5.72M	14.77M	12.13M	3.61M	4.08M
Gross Profit	2.41M	3.42M	12.53M	10.76M	1.77M	1.27M
EBITDA	890.00K	2.29M	-1.48M	6.01M	-1.19M	767.00K
Net Income	3.00M	4.94M	-42.33M	-814.00K	-13.81M	-482.00K
Balance Sheet
Total Assets	23.73M	27.27M	28.62M	86.32M	78.67M	89.81M
Cash, Cash Equivalents and Short-Term Investments	6.85M	9.44M	11.58M	23.26M	23.38M	25.71M
Total Debt	0.00	1.25M	1.46M	948.00K	500.00K	3.60M
Total Liabilities	5.26M	7.63M	13.96M	29.32M	20.95M	18.46M
Stockholders Equity	18.47M	19.64M	14.66M	56.99M	57.72M	71.35M
Cash Flow
Free Cash Flow	-1.75M	1.12M	4.98M	745.00K	-1.96M	-4.79M
Operating Cash Flow	-1.48M	2.27M	6.53M	4.53M	-1.31M	-1.00M
Investing Cash Flow	-339.00K	-3.85M	-17.69M	-4.14M	3.47M	-3.60M
Financing Cash Flow	-435.00K	-518.00K	-453.00K	-962.00K	-3.63M	-523.00K

The Parkmead Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PMG, the sentiment is Negative. The current price of 14.25 is below the 20-day moving average (MA) of 15.59, below the 50-day MA of 15.97, and below the 200-day MA of 15.63, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 22.75 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PMG.

The Parkmead Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PMG	67 Neutral	£15.84M	5.27	17.71%	―	-37.83%	―
CHAR	50 Neutral	£29.96M	-1.51	-38.38%	―	-2.69%	-5.00%
CAD	49 Neutral	£9.17M	-2.06	-21.44%	―	-29.63%	-427.78%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

The Parkmead Corporate Events

Parkmead Extends Loan and Exclusivity Agreement with EMAL

The Parkmead Group has extended its interest-bearing loan to Energy Management Associates Limited (EMAL) and continued its Exclusivity Agreement, securing exclusive rights to renewable energy opportunities. This extension includes significant projects like the Pitreadie wind farm and Kempstone Hill Wind Farm, contributing to Parkmead’s revenue. The agreement, extended to December 2028, involves a reduced loan principal and a floating interest rate, ensuring substantial exclusivity rights at zero net cash cost.

Parkmead Group Shifts Focus to Renewable Energy with Strategic Asset Sale

Parkmead Group has successfully completed the sale of its UK offshore petroleum licenses, marking a strategic pivot towards renewable energy. This move strengthens its financial position and aligns with its strategy to grow in the renewables sector, as evidenced by its ongoing development of the Glenskinnan Renewable Energy Park. The company maintains strong operational performance in its Dutch gas fields and Scottish wind farm, while also exploring new investment opportunities and reducing its North Sea operational footprint.

Parkmead Group Announces Change in Major Holdings

The Parkmead Group PLC has announced a change in its major holdings, with Stonehage Fleming Investment Management Limited increasing its voting rights to 12.00% from a previous 11.97%. This adjustment in holdings signifies a slight shift in the company’s shareholder structure, potentially impacting its governance and strategic decision-making processes.